Business 3700
Multiple Regression worksheet

1.

g=10^.02284=1.054
This indicates a growth rate of 5.4 percent.

2.

X1  Coefficient:       36

    Standard error:    52

    t statistic:     .692

     accept null hypothesis, indicating true coefficient could be

       zero and it doesn't belong


X2  Coefficient        -8

    Standard error      3
    
t statistic:     -2.667
       
reject null hypothesis, indicating true coefficent is not

       zero and it belongs


X3  Coefficient        -2
    
Standard error      9
    
t statistic:      -.222
    
accept null hypothesis, indicating true coefficient could be
       
zero and it doesn't belong

(b)The r squared value indicates how well the regression fits the data, with 1 meaning a perfect fit and 0 meaning that the independent variable is no help in predicting the value of the dependent variable.
(c) sales= 800 + 36*45,000 - 8*40 - 2*2,200 = 1,616,080